US Airways Dividend Miles (Pre-FlightFund Merger) - Philadelphia may limit USAirways' gates

Philadelphia Councilman James Kenney is proposing a plan that would limit USAirways' control of PHL gates to no more than 40%. Currently, they control 63%, or 68 gates out of 103. The hope is to keep the airport 'open' to low cost competitors.

I don't know if that 103 includes the new gates just finished at the end of D, as well as the 12 that are not yet open in Terminal 1. But even with those numbers, that puts US well over 50%.

If he succeeds in pushing this through (since the city owns and operates the airport), it could set a big precedent nationwide....

What a dim bulb! His plan is only going to harm US Airways at a time that it needs all the help it can get. So if this is successful and if subsequently US collapses, how many airlines will be rushing in to the build a hub at PHL when they can only control 40%? My guess is that no airline would take that risk. Only ORD can truly support a hub airline (UA & AA) controlling approximately 50% of traffic because its catchment area is so large and its prime geographical position as a connecting point.

If he gets his wish he'll soon be crying because of all the lost jobs, the huge cost of having an airport that only has service to other hubs and the lack of n/s service to all those places that mean old US Airways used to fly to. You can't have it both ways Philadelphia; you are either a hub or a spoke. Pick one and live with the consequences.

CWPFLY

And, US completely paid for and is entitled to their B/C/F terminals. I have no idea how long their lease is, but I don't see how the city can 'take away' their rights until the lease is up.

If push came to shove, US could easily use his posturing as an excuse to cut back, cut jobs, cut flights. All because some councilman, who probably rarely flies, made a proposal.

What a bozo.

Do they include the gates in Terminal F?

I went to Philly.com for the story from the local view - it seems that the leases for those gates are up in 2006 - I would say that US will either be dead and buried by then... or it will have reorganized and will be strong enough to outbid any other for those gates.... and let's talk landing fee's at BWI about 1.33 per thousand pounds, at PHL its 2.17 per thou... plus the on-time perfomance stinks...

This councilman wants cheaper fares? let him make gates avaialble with reasonable landing fee's

Doomed to Coach

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Doomed to Coach:
and let's talk landing fee's at BWI about 1.33 per thousand pounds, at PHL its 2.17 per thou</font>

That's not bad. My Cherokee is only 2150 lbs fully loaded. But I swear they gouged me for $20 when I landed there once.....

The lease is up in 2006. However, if they declare Chapter 11, I believe the lease becomes fair game.

Personally, I like the idea, but I Bend Over and Take it Twice (tm) from US hub pricing regularly http://www.flyertalk.com/forum/smile.gif.



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Saving the world, one clue at a time.

Now THIS is a fast rebuttal!

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ARLINGTON, Va., Jun 13, 2002 /PRNewswire-FirstCall via COMTEX/ -- US Airways
issued the following statement today in response to a proposed ordinance to
regulate gate access at Philadelphia International Airport:

"Today's proposal by some members of the Philadelphia city council to limit the
number of gates used by US Airways at Philadelphia International Airport is a
breach of good faith with our company, the customers we serve, and more than
6,500 US Airways employees based in the Philadelphia area. More importantly, it
illegally abrogates our existing lease agreement with the city, which runs
through 2006.

"If this amendment to the existing ordinance is enacted, it would severely
restrict US Airways' ability to maintain and continue to develop Philadelphia as
a premier domestic and international gateway, where we operate nearly 500 daily
departures to more than 100 destinations nonstop worldwide.

"As a company that has invested consistently in Philadelphia International
Airport for more than 50 years and is essentially financing the terminal
expansion project now underway, we find the position by even a handful of
members of the city council to be very disappointing.

"Our service growth and ongoing commitment to the City of Philadelphia and
surrounding communities is well established, and this action would irreparably
damage US Airways, our employees, customers, and the vast benefits that we bring
to Philadelphia and the region."

The article in the Phila Inquirer stated that the councilman recognizes that the lease is good through 2006. "But (Councilman) Keeney said he was introducing the bill now because airport leases might have to be renegotiated in the case of a US Airways bankruptcy."

It does make some sense. The NYC airports are 90 minutes north, BWI is less than 2hrs to the South, and Lehigh Valley (ABE), less than 90 minutes away, could be a force if SouthWest ever comes there.

Jeff

Can I get an Amen?